I have three primary income streams. For privacy reasons, I won't disclose exactly how much I make, but provide percentages instead.
Full-time job- 45% of total income
Stocks (capital gains + dividends) - 30% of total income
Self-employment (sole owner of LLC) - 35% of total income
Right now, I only have taxes withheld from my full-time job and I know for sure that I am going to end up owning the IRS. I have read that if you own too much, there is a ~3% underpayment penalty. Now the tax year is over for 2020 and there nothing I can do anymore, so I am looking to figure out what I should do in 2021.
It is easiest for me to withhold more taxes on my Full-time job since it is taken right out of my paycheck. Does anyone know if I can just increase my withholdings from my paycheck in order to prepay the taxes on my stocks and my LLC? Are there other, better ways to pre-paying taxes?
Thanks!
Submitted January 10, 2021 at 10:49PM by mdbob281 https://ift.tt/3sdKXVW
